InternationalTrading Conference 2018

InternationalTrading Conference 2018The Future of Technology-driven Energy Market Organizers

The Future of Technology-driven Energy Market

Keynote Address Energy Transition Policy and Future of Energy Industry

Session 1 DiversificationoftheNortheastAsiaEnergy Market and Its InfrastructureSession 2 TechnologyInnovationandEnergyCommodity

Market

October 23(Tue.) 13:00 Crystal Ballroom, Lotte Hotel, Ulsan

Dear Colleagues,

We are pleased to inform you that the 8th International Trading Conference 2018

will take place on Tuesday, the 23rd of October in Ulsan, Korea. This event has now

become a leading forum where experts on energy markets from home and abroad

get together to discuss trends in the global energy market and establish strategies

to further promote the energy market in Northeast Asia.

Ulsan has long been looking into measures to establish infrastructure for finance

and ICT, by drawing on its rich expertise in oil storage and the sophisticated

infrastructure in logistics as a port city. Ulsan has high hopes to establish an energy

cluster for Northeast Asia to become a hub for not only Korean industries, but also

for the global energy industry.

Amidst great change anticipated in the energy market with the emergence of

innovative technologies, this year’s conference will be held under the theme,“The

future of a technology-based energy market”to focus on changes in the energy

market brought about by blockchain and cutting edge ICT and the strategies to stay

in step with such change. We hope the event will serve as a meaningful gathering

where we pull our wisdom together to discover new growth engines for the energy

market in the 4th industrial revolution.

We really appreciate your attendance in the ITC 2018, which is co-organized by

Ulsan Metropolitan City and Ulsan National Institute of Science and Technology.

Time Subject Speaker

13:00 Registration

13:30 Welcome Speech & Congratulatory Address

Keynote Address

13:50

Energy Transition Policy and Future of Energy Industry + MC: Victoria Kim [UNIST, Professor]

The Future of the Energy Industry at a Time of a Shift in the Energy Paradigm

Yongsung Cho[Korea Energy Economics Institute,President]

Session Ⅰ

14:10

Diversification of the Northeast Asia Energy Market and Its Infrastructure+ Chair: Young-Seok Moon [Korea Energy Economics Institute, Senior Research Fellow]

Application of Blockchain to Energy Industry and Its Outlook

Seongchul Kwon[KEPCO, Principal Researcher]

China Challenges Middle East Crude Pricing Mechanisms

Alejandro Barbajosa[Argus Media, Vice President]

Development of Comprehensive Energy Futures Market at TOCOM

Ryoichi Seki [TOCOM, General Manager]

15:40 Coffee Break & Social Meeting

SessionⅡ

16:00

Technology Innovation and Energy Commodity Market + Chair: Junyoup Lee [UNIST, Professor]

Speculative Trading of Electricity Contracts in Interconnected Locations

Sebastian Jaimungal[Univ. of Toronto, Professor]

Technology and Energy Trading : Driving Transparency, Efficiency and Optionality

Richard Redoglia [Matrix Global Holdings, CEO]

New Technologies and Developments in Shipping

Nikos Nomikos [City, University of London, Professor]

17:30 Closing Address

17:40 Dinner & Social Meeting

※All session will be translated simultaneously into English or Korean.

Mayor, Ulsan Metropolitan City Chulho Song

President, UNIST Mooyoung Jung

Message & Program

Young-Seok MoonSenior Research Fellow, Korea Energy Economics Institute(KEEI)

Curriculum Vitae2018 ~ Present Senior Research Fellow, KEEI

2017 ~ 2018 Vice President, KEEI

2015 ~ Director, Energy Policy Division,

Department of Energy Industry Studies,

and etc. at KEEI

Academic Credential1990 Ph.D., Economics, State University of New York

1988 M.A., Economics, State University of New York

1984 M.S., Economics, Yonsei University

1982 B.A., Economics, Yonsei University

The Future of the Energy Industry at a Time of a Shift in the Energy Paradigm

• The global energy market is undergoing a structural shift, due to three major factors - decreased productivity brought about by

an aging population, a shift of focus in the industrial landscape from manufacturing to services and a rise in energy consumption

efficiency. Due to such change, the growth rate of the global demand for energy over the mid to long term from 2015 to 2035 is

likely to fall below 1% per annum. This is likely to have significant ripple effects in the energy industry. Moreover, while the three

major fossil fuel sources (i.e. coal, oil and gas) will continue to take up a high share in the energy mix, the share of renewables

such as solar power and wind power is anticipated to grow rapidly. As for the electricity generation industry worldwide,

technological innovation, government policies and changes in consumer preference are ushering in fundamental changes. While

the share of fossil fuels such as coal or gas is falling, renewable energy sources such as solar energy and wind are forecast to

grow significantly.

• Meanwhile, the energy industry in Korea is likely to suffer a double whammy due to an ease in the growth rate of demand for

energy and emergence of the new energy industry. In order to find new growth opportunities overseas, it is essential to boost the

competitiveness of the Korean energy industry. Among the traditional energy businesses, and in particular the export businesses

that are led by the private sector, global competitiveness is highly sensitive to government policies. As such, a more balanced

approach to policies regarding traditional energy businesses and emerging energy businesses would be required. In order to

generate new energy businesses in the future, synergy through convergence among electric vehicles, ICT, Big Data and existing

businesses must be realized. To that end, energy prices must be updated to a more realistic level, a monopoly in the market must

be broken and disclosure and application of information related to energy is required.

Keynote Speaker Chair

Session 1

Yongsung ChoPresident, Korea Energy Economics Institute(KEEI)

Curriculum Vitae2018 ~ Present President, KEEI Advisory Committee Member, Ministry of Environment, Korea Advisory Committee Member, Asia Pacific Energy Research Centre Vice President, Korea Environmental Economics Association2017 ~ Present Member, Presidential Committee on Green Growth

Academic Credential1996 Ph.D., Applied Economics, University of Minnesota1991 M.S., Economics, Korea University1987 B.A., Economics, Korea University

Speaker Session 1

Application of Blockchain to Energy Industry and Its Outlook

Over the pas t years , the app l ica t ion o f

blockchain technology across overall industry

has been expanded as well as energy industry.

The primary fields for blockchain technology

application to energy industry are in recharging

for electric cars and electricity trading for

prosumers. Also, its application covers an overall

value chain of electricity industry from generation

to sales. For upcoming 10 years, various

attempts will be tried to drive innovation in a

traditional business model using a key property

based on completeness of reliability and security

for trade. In this talk, we discuss the progress of

blockchain technology application focusing on

the case of Korea Electric Power Corporation and

also talk about the outlook in the field of “smart

city” led by distributed energy resources with

blockchain technology.

China Challenges Middle East Crude Pricing Mechanisms

In a year of momentous changes for the Asian crude market, the first futures contract for delivered crude into

China debuted in March. Saudi Arabia then three months later decided to change the pricing mechanism for

half of its crude exports east of Suez. Shanghai’s International Energy Exchange and the Dubai Mercantile

Exchange have taken center stage in the pricing of physical flows to Asia-Pacific, opening up new

opportunities for supplies from different regions to trade at differentials to futures contracts. Here are some of

the key topics that will be discussed:

• China & India, Asia’s largest crude buyers, have grown increasingly frustrated with OSP pricing mechanisms

• Arbitrage is top consideration for Asian refiners seeking to reduce dependence on Middle East crude

• Relevance of delivered crude pricing as grades from multiple regions compete in Asia-Pacific

• Shanghai’s INE futures may develop as a benchmark for delivered crude, challenging traditional Middle

East FOB pricing

Alejandro BarbajosaVice President, Argus Media

Curriculum Vitae2011 ~ Present Vice President, Argus Media in Singapore

2007 ~ 2011 Senior Crude Correspondant,

Argus Media at London headquaters

Academic Credential2011 M.S., Politics of the World Economy London School of Economics

Seongchul KwonPrincipal Researcher, Korea Electric Power Research Institute at KEPCO

Curriculum Vitae 1997 ~ Present Principal Researcher, Korea Electric Power Research Institute at KEPCO

Academic Credential2016 Ph.D.(course completion), Electric Engineering, Chungnam National University

1997 M.S., Electronic & Electric Engineering, POSTECH

1995 B.S., Mechanical Engineering, Kyungpook National University

Development of Comprehensive Energy Futures Market at TOCOM

Junyoup LeeProfessor, Ulsan National Institute of Science and Technology(UNIST)

Academic Credential2014 Ph.D., Finance, Texas Tech University

2006 M.S., Financial Engineering, Univ. of Mighigan at Ann Arbor

2004 B.S., Economics, University of Utah

2002 B.A., Business Administration, Yonsei University

The latest finance market buzzword is "Fintech",

which is ushering in a wave of new products

and service opportunities for IT and finance

companies. TOCOM was an early IT adopter

where it now taken for granted that exchanges

are technology-driven. High speed, high

performance, resil ient and scalable trading

systems compete with each other and high-

frequency traders are providing liquidity to

markets through algor i thmic trading. This

presentat ion explores how technology is

contributing to the development of commodity

derivatives markets by using the example of

TOCOM's energy market. TOCOM Dubai crude oil

and petroleum futures contracts are inextricably

linked with technology; IT enables Exchanges to

provide highly-reliable and convenient markets

to its participants.

Ryoichi SekiGeneral Manager, TOCOM

Curriculum Vitae2011 ~ Present General Manager, TOCOM

Academic Credential1993 B.A., Foreign Studies,

Sophia University

Speaker Session 1 Chair

Session 2

Speculative Trading of Electricity Contracts in Interconnected Locations

Markets for intraday electricity futures contracts at

locations that are interconnected allow traders to

speculate on relative price differences and to execute

statistical arbitrage strategies. This trading activity tends

to stabilize prices in the interconnected locations and

dampen the effects of mismatches between demand

and supply that cause price spikes. From basic

economic principles, as well as empirical observations,

order-flow from trades induce prices in both locations

to move in the direction of net order-flow. In addition

to this so-called permanent price impact from trades,

traders also receive prices that are worse than the

best available prices by walking the limit order book.

When designing optimal trading strategies, traders

must properly account for these effects in addition to

the trend or co-integration of prices. In this work, we

demonstrate how one can construct such strategies

while simultaneously accounting for the trader’s

uncertainty in the underlying model. Several examples

illustrate how the optimal strategies perform, and how

model uncertainty (also known as ambiguity aversion)

helps the trader mitigate the risk of trading.

[This talk is based on joint work with Alvaro Cartea,

University of Oxford and Zhen Qin, University of Toronto.]

Sebastian JaimungalProfessor, University of Toronto

Curriculum Vitae2005 ~ Present Professor, University of Toronto

Academic Credential1999 Ph.D., Theoretical Physics,

University of British Columbia

Technology and Energy Trading: Driving Transparency, Efficiency and Optionality

Disruptive innovations in energy markets have traditionally encountered resistance and scepticism. The

debut of oil futures in the early 1980s was dismissed as a passing fad; however, within a decade, OPEC

producers and market participants conceded that more accessible, liquid spot markets, independent price

benchmarks and Wall Street refiners had commoditized the oil space. Technology continues to unlock vast

potential and competitive advantages across all phases of energy supply and value chains. This presentation

traces the evolution of modern energy markets focusing on how new technologies are redefining the rules of

engagement with the promise of greater transparency, efficiency and optionality.

Richard RedogliaCEO, Matrix Global Holdings

Curriculum Vitae2015 ~ Present CEO, Matrix Global Holdings

2004 ~ 2015 Director, Global Energy Horizons

Academic Credential1980 B.A., Business Economics, University of California,

Santa Barbara

Speaker Session 2

New Technologies and Developments in Shipping

In my presentation I will provide an overview of

current trends and developments in shipping

markets. I will discuss the importance of shipping

in the transportation of energy commodities

and its significance in ensuring the reliability

and security of supply chain. I will also touch

upon the current trends and developments

and in particular the potential impact of new

regulations for curbing emissions. Finally, I will

discuss about technological innovations and their

impact on shipping. Shipping is an industry that

remains traditional and Fintech has the potential

to transform many of its operational practices. A

number of applications of blockchain technology

to improve operational efficiencies will also be

discussed.

Speaker Session 2

Nikos NomikosProfessor, City, University of London

Curriculum VitaeProfessor, City, University of London

Academic CredentialPh.D., Finance, Cass Business School, City, Univ. of London

M.S., Shipping, Trade & Finance, Cass Business School, City, Univ. of London

B.S., Economics, Athens University

Center for International Energy Trading

CIET, 10, Techno saneop-ro 55beon-gil, Nam-gu, Ulsan, Republic of Korea.

E-mail. itc-2018@unist.ac.kr

http://ciet.unist.ac.kr/en

http://instagram.com/itc_ciet

8th International Trading Conference 2018

International Trading Conference 2018